The interest rate on Provident Fund may be 8.1%
Before Holi, a disappointing news has come out for the government employees. The effect of this is that the pockets of about 60 million employed government employees of the country will be a little loose. Yes, Employees’ Provident Fund Organization i.e. EPFO has decided in two-day meeting of Central Board of Trustees in Guwahati to reduce the rate of interest on deposits in EPFO from 8.5% to 8.1%.
By the way, speculation was already being made in the proposed meeting of CBT to take a big decision regarding EPFO interest rate. But it was being estimated that the rate of interest could be reduced from 8.5% to between 8.45 to 8.35%. But it was approved in the meeting to keep it straight at 8.1%. Now this proposal of CBT will be sent to the Finance Ministry and if the Finance Ministry approves it, then this interest rate will be considered fixed.
230th meeting of Central Board of Trustees, Employees’ Provident Fund is being organized from 11th-12th March, 2022 in Guwahati, Assam.#EPFO #SocialSecurity #AmritMahotsav @AmritMahotsav pic.twitter.com/6CjH15vAb1
— EPFO (@socialepfo) March 11, 2022
According to media reports, if this proposed interest rate is ensured, then it will be the lowest interest rate in the history of EPFO in the last four decades. The interest rate used to be 8% in 1977-78. Remember that the Central Board of Trustees in March 2021 had decided to pay 8.5% interest on EPFO deposits for the year 2020-21. Earlier the interest rate in 2018-19 was 8.65%. In the year 2016-17 and 2017-18 also the interest rate used to be 8.65%. Earlier the interest rate used to be 8.50% in 2015-16, 8.75% in 2013-14 and 2014-15.